KZN's Okhahlamba Local Municipality in hot water over unpaid pension funds

JOHANNESBURG - The Okhahlamba Local Municipality in KwaZulu-Natal is in trouble after failing to pay more than R11 million of its employee's pension fund contributions. 

The KZN Treasury department seeks answers from the municipality’s accounting officer. 

The department said the Municipal Finance Management Act requires accounting officers to comply with tax, levy, medical aid and pension commitments. 

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KZN Finance MEC Francois Rodgers has directed that an investigation be launched.

"MEC Rodgers says failure to pay the pension contribution on or on behalf of the employees to the relevant pension funds is criminal and demonstrates a total disregard of workers' rights. This is also inconsistent with the vision of the government of provincial unity to build an ethical and developmental state which cares deeply about workers' rights," said KZN Treasury spokesperson, Nkosikhona Duma.